Archives for August 2017

Are you ready for home ownership? The prospect of owning your own house or apartment is an exciting one, but with any financial transaction this large there are some things to consider. The first is your down payment – that is, the initial payment you’ll put against the cost of the house to reduce the amount that you’re borrowing in a mortgage. Let’s have a look at four habits that will help you to get your down payment saved up faster.

Build (And Stick To!) A Reasonable Budget

The first and most obvious tip is to stick to a reasonable budget. Determine how much you have coming in and going out of your bank accounts and credit cards each month. Group everything into areas like ‘food,’ ‘utilities,’ ‘dining out,’ ‘entertainment’ and more. Then, reduce each area to a reasonable amount and avoid any overspending.

Figure Out Your ‘Latte Factor’ And Eliminate It

If you’re unfamiliar with the term, a ‘latte factor’ is that one consistent purchase that you make each day which, over time, drains your bank account. For example, if you spend $5 each day on your coffee habit that adds up to almost $2,000 per year in unnecessary costs. Pay close attention to your spending habits and try to eliminate anything that you can.

Make Automatic Payments To A Down Payment Fund

If you’re working a stable job and have regular pay periods, you may want to explore setting up a separate savings account for your down payment. Once you have this account opened, set up automatic deposits from your regular bank account after each pay day. This limits your ability to spend your cash while building up your down payment fund automatically.

Don’t Carry Credit That You Don’t Need

Finally, try not to carry credit that you aren’t going to use. This includes department store credit cards, extra bank credit cards or lines of credit. While it won’t necessarily harm your credit score to have available credit, if you do have it you’re far more likely to use it than if you don’t. You’ll need to be disciplined to save up your down payment. So don’t bother with extra credit that may be too tempting to resist using.

These are just a few of the smart money habits that will help you get your mortgage down payment saved up as quickly as possible. When you’re ready to discuss mortgage financing for your new home, contact our your trusted mortgage professional.

According to the Case-Shiller National Home Price Index for June, Seattle, Washington continued to lead home price growth for the tenth consecutive month with a June reading of 13.40 percent growth year-over-year. Portland Oregon held second place for home price growth in the 20-City Home Price Index in June but trailed Seattle by 5.20 percent with 8.20 percent year-over-year home price growth. Dallas Texas held third place with a year-over-year home price growth rate of 7.70 percent. The 20-City Home Price Index increased by 5.70 percent year-over-year and was unchanged from May’s reading.

Case-Shiller’s National Home Price Index reported a reading of 5.80 percent home price growth in June as compared to May’s reading of 5.70 percent.

Shortages of homes for sale continue to drive up home prices as sales of pre-owned homes outpace new home sales. Builders haven’t kept up with demand due to ongoing labor and lot shortages and rising materials costs. There was an estimated 4.20 months’ supply of homes for sale in June; the average level is a six-month supply. Low mortgage rates continue to encourage first-time and current buyers to enter the market.

David M. Blitzer, Managing Director, and CEO of S&P Dow Jones Indices Committee said that although home prices are rising steadily, wage growth and overall economic growth were driving demand for homes in June. Mr. Blitzer said that current economic trends indicated home price growth was not expected to reverse anytime soon.

Are you thinking about buying a new home? If you are going to make use of mortgage financing, you may be wondering about some of the costs attached. As you may have heard, all mortgages have a number of fees and other costs that are assessed at the “close,” or when you finalize the loan. Let’s take a look at a few expert tips that will help you to keep your closing costs to a minimum when you take out your next mortgage.

Aim For Zero-Closing-Cost Options If Possible

One question that you will want to ask your potential mortgage lender is whether or not they offer a low-cost or zero-cost option. What this means is that rather than you paying the closing costs, the lender pays them on your behalf. While the upside is that you aren’t stuck with a hefty bill when you are approved for your mortgage, the downside is that you are likely to have a higher interest rate over the life of your mortgage.

Get The Right Mortgage Loan To Suit Your Needs

Another way to ensure that you keep your closing costs down is to opt for the right mortgage. There are a lot of options open to you in today’s mortgage marketplace and navigating them to choose the right one can be tough. There are FHA-guaranteed loans, VA loans, USDA loans, traditional bank financing and a lot more. As each type of mortgage comes with its own set of closing costs, choosing the best one to suit your needs can limit the amount you will need to pay.

Lock In Your Mortgage Interest Rate

Finally, don’t forget that most mortgage lenders will offer a “rate lock.” This means that you can have a particular mortgage rate frozen for a set period. This might be 15, 30 or even 60 days depending on the terms of your mortgage. Using a rate lock can ensure that you keep a lower mortgage rate, even if interest rates were to change significantly in the meantime.

There you have it – three tips that you can use to ensure that you keep your closing costs to a minimum when taking out your next mortgage. For more information about local mortgage options and insight into today’s interest rates, contact your mortgage professional today.

Last week’s economic news included readings on sales of new and previously-owned homes, Weekly readings on mortgage rates and new jobless claims were also released, along with coverage of Fed Chair Janet Yellen’s remarks at a conference in Jackson Hole, Wyoming.

Home Sales Lower in July

According to the Commerce Department, new home sales fell to a seven-month low in July; 571,000 new homes were sold on a seasonally-adjusted annual basis in July. This reading fell short of the expected sales rate of 608,000 new home sales and June’s reading of 630,000 sales. This was unwelcome news for home builders, who have been under pressure to build more homes. pronounced shortage of available homes coupled with high buyer demand has pressured builders to increase their rate of housing starts. A sudden dip in new home sales could impact builders’ production rates if slow sales persist.

Buyer demand may be waning as home prices have continued to climb. July’s national average home price rose to $313700, which was 6.30 percent year over year. The National Association of Realtors® said the current inventory of available homes rose to 5.70 months. This was the highest reading in highest reading in several months. Real estate pros consider a six-month supply of homes for sale an average reading. Regardless of record high demand for homes and low inventories, rapidly rising home prices reduce the pool of potential buyers due to affordability.

Sales of previously owned homes also fell in July. The National Association of Realtors® reported that pre-owned homes sold at a seasonally-adjusted annual rate of 5.44 million sales. Analysts predicted a rate of 5.50 million sales based on June’s reading of 5.51 million sales.

This week’s economic reports include readings from Case-Shiller on home prices. Pending home sales, construction spending and inflation reports will be released in addition to weekly readings on mortgage rates and new jobless claims. Several labor reports will also be released including ADP Payrolls, Non-Farm Payrolls, and the national unemployment rate will also be released.

Buying a home for the first time? If you plan on taking out a mortgage, you will likely want to know just how you can get pre-approved for enough financing to get the home of your dreams. In today’s post, we will share four tips that will help you to boost your chances of a successful pre-approval when you apply for a mortgage.

Polish Up Your Credit Score

It should come as no surprise that your credit score is one area every mortgage lender is going to inspect. Order a copy of your credit report and be sure to go over any outstanding items in detail. Are there any old or retired debts on there that need to be removed? Or do you have any outstanding black marks that will need to be explained? If necessary, take the next step and visit a credit repair specialist to get things polished up.

It’s Best To Apply When You’re Employed

While it’s not mandatory to have a job to get a mortgage, you will certainly need to demonstrate that you have enough income to afford to make your monthly payments. Waiting until you (and your spouse or partner, if applicable) are gainfully employed will go a long way in making your lender feel confident about your repayment ability.

Don’t Take Out Any Major Loans

Of course, you will want to avoid taking out any significant loans around the time you’re applying for a mortgage. Every lender will want you to demonstrate your ability to manage your debts. So if you’re trying to get a car loan, student loan and mortgage at the same time, you’re not likely to be successful.

Maintain At Least 3 Months Of Spending Cash

Finally, many lenders will want to see that you have at least three months’ worth of cash saved up. This is so that you can continue to make your mortgage payments on time, even if something unfortunate were to happen. If possible, it’s good to have as large a safety net as is possible. If you’re able to put six months of mortgage payments aside, don’t hesitate. You can even invest the funds in some low-risk or guaranteed investment and they will grow over time.

The mortgage pre-approval process is not meant to be scary or intimidating. In fact, it’s an excellent time to give yourself a financial tune-up before purchasing your new home. For more information about mortgage options, contact your trusted mortgage professional today.

Let’s Keep In Touch!

Categories

Categories

Previous Posts

Previous Posts

Looking For Something?

Where We're Located

Directions from I-25
• Take Exit 392 for Windsor and head East.
• Go 3.5 miles and take a left onto 12th Street.
• Take first right at West Ash Street.
• Turn right into the first parking lot/office building complex. The building has green awnings. Please call if you need assistance.